Snapchat reportedly preparing stock market launch

The company behind the popular image messaging and multimedia mobile app Snapchat, Snap Inc., is reportedly planning a $25 billion IPO.

Several people familiar with the matter told the Wall Street Journal that the company is preparing the paperwork for a stock market launch as early as late March 2017. However, this depends on other factors such as market volatility, the outcome of the US presidential election, and how well the Chinese economy performs.

If the report is true it would represent one of the highest profile stock market debuts in years – since Alibaba Group Holding Ltd. debuted at a $168 billion valuation in 2014.

The valuation of the company soared after it introduced advertising and sponsored contents to its service.

Earlier this year the company told investors that it expected revenue of between $250 million and $350 million this fiscal year, projecting that figure to more than double to $1 billion in 2017.

Two people familiar with the matter have said that Snap is already beating its 2016 revenue forecast.

The report is in line with a previous article published by The Information last month which said that Snapchat had been in talks with investment bankers about an IPO towards the end of this year or early next year.

“We aren’t commenting on rumors or speculation about any financing plans,” the company said in an emailed statement on Thursday, Reuters reports.

Snapchat had 150 million people using its ephemeral messaging app on a daily basis in June, up 36% compared to December 2016 and beating Twitter which had 140 million daily active users.